{"id":3732,"date":"2023-04-25T13:15:00","date_gmt":"2023-04-25T18:15:00","guid":{"rendered":"https:\/\/embarrdowns.com\/bed-bath-beyond-files-for-chapter-11-bankruptcy-amid-covid-19-pandemic\/"},"modified":"2023-04-25T13:21:07","modified_gmt":"2023-04-25T18:21:07","slug":"bed-bath-beyond-files-for-chapter-11-bankruptcy-amid-covid-19-pandemic","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/bed-bath-beyond-files-for-chapter-11-bankruptcy-amid-covid-19-pandemic\/","title":{"rendered":"Bed Bath & Beyond Files for Chapter 11 Bankruptcy Amid Covid-19 Pandemic"},"content":{"rendered":"

Bed Bath & Beyond, the US-based home goods retailer, filed for Chapter 11 bankruptcy on Sunday, as it struggles to stay afloat amid the coronavirus pandemic.[0]<\/a><\/sup> The company said that its 360 Bed Bath & Beyond and 120 BuyBuy Baby stores and websites would remain open for now, but over time they would be closed.[1]<\/a><\/sup> The retailer has been losing market share and reporting a decrease in quarterly sales, and the Covid-19 pandemic has only worsened its financial situation.[2]<\/a><\/sup> During the era of “category killers” Bed Bath & Beyond was considered a shining example of this retail phenomenon. These chains, like Toys “R” Us, Circuit City, and Sports Authority, dominated a specific category of retail.[3]<\/a><\/sup> Eventually, those corporations also declared bankruptcy due to customers shifting from large specialty stores to internet alternatives such as Amazon.[3]<\/a><\/sup><\/p>\n

Contrary to the claims of certain experts, the downfall of Bed Bath & Beyond does not signify the unavoidable downfall of physical retailers who find it difficult to rival Amazon.com Inc.[2]<\/a><\/sup> According to suppliers, analysts, and former managers and employees, Bed Bath & Beyond is mainly accountable for its own downfall.[2]<\/a><\/sup> Over the course of almost ten years, the management groups of the retailer gradually made choices that drove the company to the edge of economic ruin.[2]<\/a><\/sup><\/p>\n

Mark Tritton, a former executive at Target, assumed leadership in 2019, supported by investors and a daring new plan.[4]<\/a><\/sup> He reduced the usage of coupons and inventory of national brands and gave more preference to the private-label brands of Bed Bath & Beyond.[3]<\/a><\/sup> However, the merchandise shift failed to land with customers, and the strategy ended up filling stores with too many unknown private-label products at the expense of well-known national brands.[2]<\/a><\/sup><\/p>\n

To avoid bankruptcy, the struggling retailer had intended to generate approximately $1 billion in February by issuing preferred stock and warrants.[5]<\/a><\/sup> In late March, Bed Bath terminated the agreement and revealed intentions to vend $300 million worth of its shares. Additionally, the company issued another caution that it may need to file for bankruptcy if it is incapable of obtaining the necessary funds.[6]<\/a><\/sup><\/p>\n

To help fund its operations in bankruptcy, Bed Bath & Beyond said that it has received a commitment of approximately $240 million in debtor-in-possession financing from Sixth Street Specialty Lending Inc.[7]<\/a><\/sup> The company estimated it had assets of $4.4 billion and total debt of $5.2 billion as of late November 2019, according to a court filing.[2]<\/a><\/sup> BNY Mellon holds the largest unsecured claim of $1.18 billion among the 25,001 to 50,000 creditors.[2]<\/a><\/sup> Holly Etlin, the chief financial officer of Bed Bath & Beyond, has been appointed as the chief restructuring officer to oversee the bankruptcy proceedings.[2]<\/a><\/sup><\/p>\n

Bed Bath & Beyond said that it expects customers will be able to use gift cards through May 8 and redeem Welcome Rewards until May 15.[8]<\/a><\/sup> The company announced its intention to market some or all of its business for sale.[3]<\/a><\/sup> In the event that a buyer is found, store closings will be ceased by Bed Bath & Beyond.[3]<\/a><\/sup> In the absence of a potential buyer, it is probable that Bed Bath & Beyond will face liquidation and ultimately cease operations.[3]<\/a><\/sup><\/p>\n

0. <\/span>“Bed Bath & Beyond files for Chapter 11 bankruptcy” KFSN-TV, 23 Apr. 2023, https:\/\/abc30.com\/bed-bath-and-beyond-files-for-chapter-11-bankruptcy\/13173895<\/a><\/a><\/p>\n

1. <\/span>“Homeware giant Bed Bath & Beyond has filed for bankruptcy” NPR, 23 Apr. 2023, https:\/\/www.npr.org\/2023\/04\/23\/1147402660\/bed-bath-beyond-bankruptcy<\/a><\/a><\/p>\n

2. <\/span>“Bed Bath & Beyond files for bankruptcy as turnaround fails” The Boston Globe, 23 Apr. 2023, https:\/\/www.bostonglobe.com\/2023\/04\/23\/business\/bed-bath-beyond-files-bankruptcy-after-sales-decline\/<\/a><\/a><\/p>\n

3. <\/span>“Bed Bath & Beyond files for bankruptcy” CNN, 23 Apr. 2023, https:\/\/www.cnn.com\/2023\/04\/23\/business\/bed-bath-beyond-bankruptcy\/index.html<\/a><\/a><\/p>\n

4. <\/span>“Bed Bath & Beyond files for Chapter 11 bankruptcy protection, will liquidate” Axios, 23 Apr. 2023, https:\/\/www.axios.com\/2023\/04\/23\/bed-bath-beyond-bankruptcy-chapter-11-liquidation<\/a><\/a><\/p>\n

5. <\/span>“Bed Bath & Beyond files for bankruptcy protection after long struggle, begins liquidation sale” CNA, 23 Apr. 2023, https:\/\/www.channelnewsasia.com\/business\/bed-bath-beyond-files-bankruptcy-protection-liabilities-3438146<\/a><\/a><\/p>\n

6. <\/span>“Bed Bath & Beyond files for bankruptcy protection after failed turnaround efforts” CNBC, 23 Apr. 2023, https:\/\/www.cnbc.com\/2023\/04\/23\/bed-bath-beyond-files-for-bankruptcy-protection.html<\/a><\/a><\/p>\n

7. <\/span>“Bed Bath & Beyond files for bankruptcy after years of declining sales” NBC News, 23 Apr. 2023, https:\/\/www.nbcnews.com\/business\/business-news\/bed-bath-beyond-files-bankruptcy-going-out-of-business-whats-next-rcna80682<\/a><\/a><\/p>\n

8. <\/span>“Bed, Bath & Beyond files for bankruptcy, announces ‘winding down’ of operations” UPI News, 23 Apr. 2023, https:\/\/www.upi.com\/Top_News\/US\/2023\/04\/23\/bed-bath-beyond-files-bankruptcy\/3441682257197\/<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bed Bath & Beyond, the US-based home goods retailer, filed for Chapter 11 bankruptcy on Sunday, as it struggles to stay afloat amid the coronavirus pandemic.[0]<\/a><\/sup> The company said that its 360 Bed Bath & Beyond and 120 BuyBuy Baby stores and websites would remain open for now, but over time they would be closed.[1]<\/a><\/sup> The retailer has been losing market share and reporting a decrease in quarterly sales, and the Covid-19 pandemic has only worsened its financial situation.[2]<\/a><\/sup> During the era of “category killers” Bed Bath & Beyond was considered a shining example of this retail phenomenon. These chains, like Toys “R” Us, Circuit City, and Sports Authority, dominated a specific category of retail.[3]<\/a><\/sup> Eventually, those corporations also declared bankruptcy due to customers shifting from large specialty stores to internet alternatives such as Amazon.[3]<\/a><\/sup><\/p>\n

Contrary to the claims of certain experts, the downfall of Bed Bath & Beyond does not signify the unavoidable downfall of physical retailers who find it difficult to rival Amazon.com Inc.[2]<\/a><\/sup> According to suppliers, analysts, and former managers and employees, Bed Bath & Beyond is mainly accountable for its own downfall.[2]<\/a><\/sup> Over the course of almost ten years, the management groups of the retailer gradually made choices that drove the company to the edge of economic ruin.[2]<\/a><\/sup><\/p>\n

Mark Tritton, a former executive at Target, assumed leadership in 2019, supported by investors and a daring new plan.[4]<\/a><\/sup> He reduced the usage of coupons and inventory of national brands and gave more preference to the private-label brands of Bed Bath & Beyond.[3]<\/a><\/sup> However, the merchandise shift failed to land with customers, and the strategy ended up filling stores with too many unknown private-label products at the expense of well-known national brands.[2]<\/a><\/sup><\/p>\n

To avoid bankruptcy, the struggling retailer had intended to generate approximately $1 billion in February by issuing preferred stock and warrants.[5]<\/a><\/sup> In late March, Bed Bath terminated the agreement and revealed intentions to vend $300 million worth of its shares. Additionally, the company issued another caution that it may need to file for bankruptcy if it is incapable of obtaining the necessary funds.[6]<\/a><\/sup><\/p>\n

To help fund its operations in bankruptcy, Bed Bath & Beyond said that it has received a commitment of approximately $240 million in debtor-in-possession financing from Sixth Street Specialty Lending Inc.[7]<\/a><\/sup> The company estimated it had assets of $4.4 billion and total debt of $5.2 billion as of late November 2019, according to a court filing.[2]<\/a><\/sup> BNY Mellon holds the largest unsecured claim of $1.18 billion among the 25,001 to 50,000 creditors.[2]<\/a><\/sup> Holly Etlin, the chief financial officer of Bed Bath & Beyond, has been appointed as the chief restructuring officer to oversee the bankruptcy proceedings.[2]<\/a><\/sup><\/p>\n

Bed Bath & Beyond said that it expects customers will be able to use gift cards through May 8 and redeem Welcome Rewards until May 15.[8]<\/a><\/sup> The company announced its intention to market some or all of its business for sale.[3]<\/a><\/sup> In the event that a buyer is found, store closings will be ceased by Bed Bath & Beyond.[3]<\/a><\/sup> In the absence of a potential buyer, it is probable that Bed Bath & Beyond will face liquidation and ultimately cease operations.[3]<\/a><\/sup><\/p>\n

0. <\/span>“Bed Bath & Beyond files for Chapter 11 bankruptcy” KFSN-TV, 23 Apr. 2023, https:\/\/abc30.com\/bed-bath-and-beyond-files-for-chapter-11-bankruptcy\/13173895<\/a><\/a><\/p>\n

1. <\/span>“Homeware giant Bed Bath & Beyond has filed for bankruptcy” NPR, 23 Apr. 2023, https:\/\/www.npr.org\/2023\/04\/23\/1147402660\/bed-bath-beyond-bankruptcy<\/a><\/a><\/p>\n

2. <\/span>“Bed Bath & Beyond files for bankruptcy as turnaround fails” The Boston Globe, 23 Apr. 2023, https:\/\/www.bostonglobe.com\/2023\/04\/23\/business\/bed-bath-beyond-files-bankruptcy-after-sales-decline\/<\/a><\/a><\/p>\n

3. <\/span>“Bed Bath & Beyond files for bankruptcy” CNN, 23 Apr. 2023, https:\/\/www.cnn.com\/2023\/04\/23\/business\/bed-bath-beyond-bankruptcy\/index.html<\/a><\/a><\/p>\n

4. <\/span>“Bed Bath & Beyond files for Chapter 11 bankruptcy protection, will liquidate” Axios, 23 Apr. 2023, https:\/\/www.axios.com\/2023\/04\/23\/bed-bath-beyond-bankruptcy-chapter-11-liquidation<\/a><\/a><\/p>\n

5. <\/span>“Bed Bath & Beyond files for bankruptcy protection after long struggle, begins liquidation sale” CNA, 23 Apr. 2023, https:\/\/www.channelnewsasia.com\/business\/bed-bath-beyond-files-bankruptcy-protection-liabilities-3438146<\/a><\/a><\/p>\n

6. <\/span>“Bed Bath & Beyond files for bankruptcy protection after failed turnaround efforts” CNBC, 23 Apr. 2023, https:\/\/www.cnbc.com\/2023\/04\/23\/bed-bath-beyond-files-for-bankruptcy-protection.html<\/a><\/a><\/p>\n

7. <\/span>“Bed Bath & Beyond files for bankruptcy after years of declining sales” NBC News, 23 Apr. 2023, https:\/\/www.nbcnews.com\/business\/business-news\/bed-bath-beyond-files-bankruptcy-going-out-of-business-whats-next-rcna80682<\/a><\/a><\/p>\n

8. <\/span>“Bed, Bath & Beyond files for bankruptcy, announces ‘winding down’ of operations” UPI News, 23 Apr. 2023, https:\/\/www.upi.com\/Top_News\/US\/2023\/04\/23\/bed-bath-beyond-files-bankruptcy\/3441682257197\/<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":3731,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/3732"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=3732"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/3732\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/3731"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=3732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=3732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=3732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}